I know trading shouldn't be fun but trading Bitcoin is an enjoyable asset to trade, due to its volatility and explosive price action, particularly if you are on the right side of the trade!
My winning trade on Bitcoin was first entered on 6 November with the full position being closed on 13 November. Let's delve into the trading set up.
The initial entry was where shown on the chart. Technically, this was not a valid set up as per my rules. I could see that Bitcoin was starting to show clear momentum and when the small red candle was taken out I entered and positioned a very generous stop loss, well below the bullish elephant candle. That bullish elephant bar was the first bar to try and pierce the 200 period moving average.
Price did actually continue moving to the upside and I then continued to monitor the price action as the candles continued to print. The price action started to consolidate as noted below.
An ascending triangle pattern started to form after a significant move up. I still had my original trade open. I hadn't waited for confirmation on that trade but I was adamant that this time I was going to patiently wait for a breakout set up.
Price did eventually break the resistance of the ascending triangle and I added to my original trade and moved my stop loss up so that I could be in profit regardless of what price decided to do. The stop loss was subsequently moved even higher than what you see in the chart above.
Price moved up to about US$90,000 and then started pulling back. I figured that price was now entering a danger zone in the move up to the psychological barrier of a $100,000 Bitcoin and I decided to exit my trades at $86,444 which yielded a profit of $3,800 as noted below.
I made mistakes in this trade, but the key to mistakes is managing them and that is exactly what I did. I didn't wait for a confirmation of my initial trade and I will try harder to ensure that in the future I continue to work on my discipline.
Trade Clearly!
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